Upgrade to Froyo

I am using Europian unlocked htc hero and it got Android 2.1 update 3 weeks back OTA, is it possible to update it to Android 2.2 through rooting and with any custom ROM available? I have never done rooting and new to it, would it be possible to to get it back to original factory settings after rooting? Please help.

There is a version of Froyo for rooted devices, but its in its early stages, it seems pretty stable to me, it does not have SenseUI, the default camera wont work, and Facebook syncing is a pain to intergrate, and battery life is not amazing, but thats rooted roms for you.

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